Question 1 1 1 You are given a projected cash flow from a proposed project by government in the table below. You are informed that the firm's cost of capital is 12 percent. Answer the questions the follow: Year Sales Less: Variable costs Fixed costs 1 10,000,000 4,000,000 100,000 2 11,000,000 4,400,000 100,000 3 12,100,000 4,840,000 100,000 133,100,000 5,324,000 100,000 5 14,641,000 5,856,400 100,000 Depreciation Profit before tax 3,000,000 2,900,000 3,000,000 3,500,000 3,000,000 4,160,000 3,000,000 4,886,000 3,000,000 5,684,600 Less: Income tax 1.160,000 1400,000 1,664,000 1954,000 2,273,840 Profit after tax 1,740,000 2,100,000 2,496,000 2,931,600 3,410,760 Plus: Depreciation 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 Net Cash flow 4,740,000 5.100,000 5496,000 5931.600 6,410 760 Plus salvage value of machinery 4,000,000 Recapture of working capital 3,000,000 Net cash flow (year 5) 13,410,760.00 a. Compute the net present value of the 5-year proposed capital investment given the information above and also that the initial cost is K20 million. b. Compute the internal rate of return